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SPOV (Delisted)

PRI reporting framework 2017

You are in Indirect - Inclusive Finance » Contractual agreements and mandate design

Contractual agreements and mandate design

IFI 03. Including issues referred to in the PIIF

03.1. When agreeing contracts and designing mandates with investment managers, in the process, indicate if you consider including the following issues referred to in the PIIF:

Actively supporting retail providers to innovate and expand the range of financial services to low-income people (Principle 1)

Describe and indicate how.

Most funds we invest in provide technical assistance to their investees. During DD SPF Beheer talks about how this facility is set up.

Integration of client protection in investment policies and practices (Principle 2)

Describe and indicate how.

All of the funds have to comply with the PIIF principles. The CPP is part of this framework. With the managers SPF Beheer discusses how they stimulate and monitor their investees in implementing the framework. How they adopt this in their contractual framework with investees is also considered.

Treating investees fairly with appropriate financing needs that meets demand, clear and balanced contracts and fair processes for resolving disputes (Principle 3)

The inclusion of ESG issues in investment policies and reporting (Principle 4)

Describe and indicate how.

All of the funds we invest in, directly or indirectly, impact investing or not, are subject to our policy on ESG and our exclusion list. These are minimum requirements. Often impact investments and the lists that external impact investing managers use in this respect go much further. We will always make use of the most complete and most invasive policy, also if that means it is not our own list. An external manager that does not consider the inclusion of any ESG issues will not be selected.

Active promotion of transparency in all aspects (Principle 5)

Striving for a balanced long-term social and financial risk-adjusted return that recognises the interests of clients, retail providers and investors (Principle 6)

Describe and indicate how.

The investment strategy is agreed upon in the contract. In this strategy the aim of the fund and the methods to achieve this aim are set out. Both the financial as well as the non-financial returns are elaborated upon. Also the contract demands an amendment to the agreed investment strategy to be adopted only after asking consent of the participants in the Fund.

Collaborating to set harmonised investor standards that support the further development of inclusive finance (Principle 7)

03.2. Additional information. [Optional]

Most of the money that we have invested in impact investing is invested through external managers who are PIIF signatories themselves. This gives us additional confirmation that the managers will comply with the principles. In the contract with the external managers we refer to the PIIF principles in general and demand the manager to be compliant.

Not all of the PIIF principles are explicitly mentioned in the contract. All of the points are integrated in the selection process however. When a manager is not compliant, it will not be selected to execute our impact investments. In case a manager would become incompliant after the contract is signed, we will start dialogue. Such a situation has never occurred since only trusted parties with a good track record are selected as our external manager.

The PIIF principles are also included in the loan contracts that our external managers conclude with the financial institutions. This is taken up during the DD.